Virginia has approved the development of a $1.4 billion battery plant as the US tries to tries to reduce its reliance on imported Chinese batteries.
Governor Glenn Youngkin gave the green light for Microporous LLC, the U.S. lithium-ion battery producer, to build a new manufacturing facility in Pittsylvania County.
The plant will produce lithium-ion battery separators, the rechargeable batteries widely used in electric vehicles (EVs), energy storage systems and other consumer electronics for America.
The company will develop the project in two phases in Danville, with both phases involving the development of two 500,000 square foot facilities and the creation of at least 2,015 jobs.
Commenting on the update in the company's press release, Danville Mayor Alonzo Jones said, "The significant investment and job creation represent a major step forward for our region, positioning us at the forefront of advanced manufacturing in the lithium-ion battery industry."
According to an S&P market intelligence report, EV battery shipments were up 26 percent year-on-year in the second quarter of 2024 - with the majority coming from China.
Elon Musk's Tesla is supplied with batteries for his electric cars by China's Contemporary Amperex Technology Co. Ltd., the world's largest battery maker, according to S&P Global.
It also reportedly has an agreement with China's Sichuan Yahua Industrial Group where the Chinese company is providing Tesla with batteries until 2030, according to Nasdaq.
However Musk has been working on developing Tesla's own battery, and recently announced plans to make a battery at 56 percent of the typical cost, allowing them to manufacture a Tesla car with a price tag of only $25,000, according to Jalopnik.
Tesla has made the 4680 battery cell, the battery that powers Tesla's Cybertruck, and in September celebrated the production of its 100 millionth 4680 battery cell.
However, the founder of China's Contemporary Amperex Technology Co. Ltd., Robin Zang, told Reuters that he informed Musk that his plan to use the 4680s, a cylindrical battery, is "going to fail and never be successful."
Newsweek has contacted Microporous and the Tesla press office via email for comment.
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